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18 Mar 2015
Credit Suisse: USD/JPY might see 125 over a 3-m view – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Suisse maintains a bullish outlook on USD/JPY, anticipating the pair to move higher towards 125 in 3m and 127 in 12m.
Key Quotes
“We expect the rising current account surplus to continue recycling via portfolio outflows as Japanese residents structurally unwind their domestic asset bias (i.e. GPIF reallocation). This should prevent the improving trade and income balances from acting as headwinds to our bullish USDJPY view.”
“Additionally, even if the BoJ chooses to wait until H2 2015 before launching the next round of monetary easing, widening rate differentials and the low level of implied rate volatility should allow JPY to retain its status as a preferred funding currency.”
“And with the FOMC potentially just months away from “liftoff”, we continue to forecast USDJPY at 125 in 3m and 127 in 12m."
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“We expect the rising current account surplus to continue recycling via portfolio outflows as Japanese residents structurally unwind their domestic asset bias (i.e. GPIF reallocation). This should prevent the improving trade and income balances from acting as headwinds to our bullish USDJPY view.”
“Additionally, even if the BoJ chooses to wait until H2 2015 before launching the next round of monetary easing, widening rate differentials and the low level of implied rate volatility should allow JPY to retain its status as a preferred funding currency.”
“And with the FOMC potentially just months away from “liftoff”, we continue to forecast USDJPY at 125 in 3m and 127 in 12m."
This content has been provided under specific arrangement with eFXnews.